Portuguese Parliament Rejects Landmark Labour Reform

The proposed overhaul sought to amend over 100 articles of the national labour code, ostensibly to stimulate productivity and economic growth. Critics, however, viewed the measures as a direct assault on employee protections. The bill would have lowered barriers for just-cause dismissals, replaced mandatory reinstatement for unlawful firing with financial compensation, and removed existing restrictions on outsourcing.

Union opposition remained fierce throughout the process, culminating in two general strikes over the last six months. In the 230-seat chamber, only 100 votes supported the bill—primarily from the ruling coalition and the Liberal Initiative. The opposition bloc, led by Chega’s 60 deputies and the Socialists’ 58, secured the rejection amid heavy applause from the public galleries. Negotiations between Prime Minister Montenegro and Chega leader Andre Ventura collapsed in their final hours, primarily over the far-right's demand to lower the retirement age from 66 years and 9 months to 65, a concession the government refused to grant.